HomeMy WebLinkAboutCC AG PKT 2008-07-14 #Y• AGENDA STAFF REPORT
DATE: July 14, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Vince Mastrosimone, Director of Public Works
SUBJECT: REJECT BIDS FOR LAMPSON AVENUE WELL
PROJECT NO. WT0801
SUMMARY OF REQUEST:
The City Council is asked to reject all bids for the Lampson Avenue Well Project,
Specification No. WT0801 and authorize staff to re-advertise the project for bids.
BACKGROUND:
The adopted 2003 Water Master Plan identified a deficiency in water production
in the northern portion of the city. The master plan recommended a new well to
produce potable water and fire flow to meet current capacity needs and
demands. In the 2007/08 Budget, City Council allocated $2,000,000 in the City's
Water Enterprise Funds Capital Projects budget for construction of the Lampson
Avenue Well Project, Phase 1.
Engineering staff prepared a full bid package to advertise and solicited for bids
for the Lampson Avenue Well Project. The scope of work includes drilling the
water well and monitoring water quality.
On May 22, 2008 the City Clerk's office received and opened sealed bids. Four
bids were opened with the following results:
# COMPANY NAME BID AMOUNT
1 Palm Springs Pump & Drilling $1,830,685
2 Bakersfield Well & Pump, Co. $1,836,250
3 Layne Christensen, Co. $2,098,000
4 Southwest Pump & Drilling, Inc. $2,118,810
Agenda Item Y
Page 2
Inconsistencies were found in the low bidder's bid package that pertained to
having the necessary licenses to perform the work required. Staff reviewed the
language in the contract documents referencing licenses and determined that it
needed further clarification and could indeed cause confusion to the bidders.
Staff spoke to the low bidder and informed them of our confusion.
Staff recommends that all bids be rejected due to unclear language in the
contract documents and possible legal challenges from both the low bidder and
the second low bidder depending on award. Re-advertising with further bid
document clarifications will be done immediately. Anew bid date is set for July
30, 2008.
FINANCIAL IMPACT:
In the approved 2007/08 - 2008/09 Budget, Water Capital funds are budgeted for
Project No. WT0801 in the amount of $2,000,000. The engineer's estimate for
the well construction was $1.6 million.
Funding
Water Capital Fund $ 2,000,000
Expenses
Design Engineering $ 340,000 •
Construction $ 1,600,000
Construction Engineering $ 60,000
Total $ 2,000,000
RECOMMENDATION:
It is recommended City Council reject all bids for the Lampson Avenue Well
Project, Specification No. WT0801 and authorize staff to re-advertise the project
for future bidding.
S B E NOTED AND APPROVED:
ince Mastrosimone David Carma ,City Manager
Director of Public Works
P:1042 Englneenng, CIP and General Adntln FIes1042 Counal Reports and Rem1042 Coundl Memos 20081200&07-14weJect Bids for Lempson Avenue Well •
Pro~ed.doc
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(2015.5 C.C.P.)
• STATE OF CALIFORNIA,
County of Orange
I am a citizen of the United States
and a resident of the county afore-
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